INTERVAL OWNERSHIP
Have you ever considered purchasing that dream resort home, only to get discouraged with the realization that the cost of the “Dream” is hard to justify with your pending budget? Well, if your vacation schedule allows you specific times of freedom, why not simply purchase specific times as well, with interval ownership.
Interval Ownership is a simple, practical concept, which offers the opportunity to own a fully furnished home at a fraction of the cost of purchasing an entire second home. Each purchaser as a shareholder owns an exclusive interest in a home and is entitled to occupy the unit each year for the time interval purchased. Most often ownership is divided into quarter or eighth shares. Quarter share ownership for example allows you one week every month, eighth share one week every two months, twelfth share, four weeks a year. The concept of interval ownership discussed here reflects actual equitable ownership and not simply allotments of time, as found with “Time shares” sales. Owners may rent, sell or exchange their weeks just like any other real estate, and unlike most time shares these rights last forever. The investment also grows with appreciation just like other real estate investments
A one-time purchase guarantees vacations forever at today's prices, with no repair or maintenance problems or seasonal openings and closings. Your vacation begins the moment you arrive, and all you are required to bring is your toothbrush. Most units actually have individually allocated lock-out closets for each owner. As vacation costs rise, your one time investment in vacation ownership will prove a remarkable value.
Through an annual operations fee, owners share the maintenance cost to ensure the quality of the property stays the same. This fee covers the property management, upkeep of units, refurbishing, utilities and maintenance. This is a small annual expense when you consider that on your vacation you will enjoy the luxuries of home such as a Plasma TVs, DVD’s exquisite furnishings, and spacious accommodations. Units are typically refurbished yearly; furnishings and equipment are replaced as required.
Many families now own second homes. However, some decide that full ownership of a second home is not practical due to availability of disposable income, problems associated with caring for a second home from long-distance, or simply from the short periods that families actually use the second home. For these families "Interval Ownership" offers the ideal alternative.
Brad Toland explained, “We always wanted to own on the beach in Rocky Point, where we enjoy entertaining both clients and family. We looked at purchasing a home in Las Conchas but the cost was a bit prohibitive. Equity sharing, in our case an eighth share, was a perfect solution. We have our home six weeks per year and also as importantly, share in the maintenance cost as well.”
In Puerto Peñasco this concept is growing, as more and more investors are seeing the benefits of sharing equity in high end real estate purchases. Some homes are being sold in equitable increments with simple contracts explaining each investor’s ownership rights.
The more secure investments of this kind actually allow investors to own shares of stock in L.L.C’s, or Mexican corporations that hold title to the property. One project is actually discussing individual trusts to its quarter share holders, a concept never before done in Mexico. Rodger Clifton, a respected leader in interval ownership projects here in Rocky Point, expressed his concerns towards the safety of investors who purchase in the unregulated interval ownership projects. Some of the projects here have such positively thought out CC&R’s that just about every situation is covered for investment safety and growth. It is very important to discuss your situation with an agent or agency that specializes in these investments. In Rocky Point there is now an association of real estate professionals called AMPI that can steer you in the right direction. AMPI, the most widely accepted real estate organization in all of Latin America has made phenomenal progress here in Puerto Peñasco. This internationally respected association of real estate professionals officially became a reality last March and has already become one of the largest associations of any kind ever in Rocky Point with over 100 members. Our local chapter has representation from all of the major real estate companies that operate in and around Puerto Peñasco. Only credible realtors with continual AMPI approved educational courses can maintain membership of this organization. It is this proactive entity that will take the real estate industry into the future.
The timing could not be better for the positive development of a town that is expected to be one of the hottest resort communities in this hemisphere. Economists from Mexico City have projected our growth explosion to continue for years to come. These expectations are based partially on the fact that we have experienced such astounding progress on drive in traffic alone. The international audience is just starting to look our way with the official announcement of the approval of the Puerto Peñasco Airport, the Coastal highway to be completed in the very near future, connecting us to California, and the Nautical ladder which will encourage more oceanic tourism like small cruise ships.
Once you have taken a look at what your normal vacation pattern is, it’s easy to determine whether interval ownership is right for you, or which package you will want to own. Next consider which one of the projects will best accommodate your needs. Right now there are hundreds of opportunities available right here in Puerto Peñasco to own your share of paradise, and you can feel confident that your investment will grow with prime real estate in Mexico. Start enjoying endless vacations, with priceless memories and moments shared by family and friends forever.
Kent White
Realty Executives Rocky Point
AMPI Section 51